• 19 Apr

    The Unexpected Effects Of The Icelandic Volcanic Ash Clouds

    There has been much comment in the press about the clouds of Icelandic volcanic ash, currently above the UK, which have brought our aviation industry to a standstill. This will undoubtedly have a dramatic effect on the airlines but they will not be the only businesses that are affected, there is a supply chain domino effect that will also come into play.

    It will not only be the airlines and businesses that import and export using air freight that will be affected. There will be a whole raft of businesses that will suffer the knock-on effects of the ash clouds suspending air travel, as they supply the airlines e.g. caterers and food supply businesses, recruitment companies that supply staff, fuel companies, transport companies etc. and the next layer of businesses to be affected will be those that supply those support businesses, and so on.

    There are likely to be cash flow problems precipitating throughout the UK industry as a result of the Icelandic volcanic ash clouds, even after the current flight ban has been lifted.

    By Glenn Blackman

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